Funding Cuts Could Affect Bethlehem Abuse Shelter

February 13, 1986|by DAN HARTZELL, The Morning Call

Officials from several of the five non-profit agencies whose 1986 federal grants from Bethlehem are likely to be reduced by 15 percent feel it is too early to tell how the cuts will affect the programs.

In at least one case, however - establishing a center for abused women in Bethlehem - the loss could mean the difference between obtaining a building that fits the desired specifications, and not getting it.

The Junior League of the Lehigh Valley, in conjunction with Turning Point, the successful Allentown center for abused women, obtained a $75,000 grant to help purchase and establish a Bethlehem center.

But because of budget-cutting on the federal level, Bethlehem officials discovered their anticipated Community Development Block Grant funding would be reduced by $323,160, to $1,161,840 - a reduction of 30 percent from the $1.65 million of 1985.

Two City Council committees voted unanimously Tuesday to approve the administration's recommendation to reduce by 15 percent the allocations for the five non-profit organizations that received money. This will bring the Junior League's grant down to $63,750, if council approves. A public hearing is required under federal law before the budget is amended.

"It presents a serious problem for us, because the house we intended to buy with that funding (costs) $80,000," Pat Kesling of the Junior League said yesterday. "It might mean the difference (between getting the house or losing it), but we don't know yet."

Barbara Pavlo, who heads the league's Project Research Committee, agreed that it is too early to determine the effect of the shortfall but, echoing the sentiments of several other officials of the designated organizations, she observed, "Obviously it's not good."

The Bethany House project of New Bethany Ministries, at 4th and Wyandotte streets, would be cut by $9,000, from $60,000 to $51,000. The Rev. William Dodd, president of New Bethany Ministries, also said the news "doesn't sound too good." He said the organization hopes to obtain added state funding to help make up the loss.

New Bethany Ministries is converting the former Wine Cellar building into a social services center. The program also benefited from a $75,000 block grant in the 1985 funding year. That money, along with private contributions raised by the organization, helped open Bethany House last November.

Jose Perna of the Council of Spanish-Speaking Organizations of the Lehigh Valley said the reduction from $30,000 to $25,500 would be handled in a variety of ways, and he hopes all of the objectives of the renovation project for the organization's center for the elderly can still be met.

Perna also spoke of seeking other funding and of using more Private Industry Council workers, who have done an excellent job on the project so far, he said.

"There's no question it's going to affect us somewhat, but . . . we're going to have to . . . try to thin some things out, and possibly get more volunteer work," he said.

The organization purchased the center for the elderly at 520 E. 4th St. with the help of a $20,000 block grant in 1985.

The others who received funding this year, and the reduced amounts they would receive, are Historic Bethlehem Inc., $10,625, and Bethlehem Raiders youth football team, $5,950.

Actually, all non-profit groups who receive funding this year may be lucky in a sense, because it is possible they may be the last to obtain any block grant funding from Bethlehem.

City Council has agonized for years over its policy of funding non-profit agencies with the federal program money, because it became increasingly difficult to justify choices as the number of deserving applicants grew quickly.

In March 1984, council passed a resolution confirming a long-standing administrative policy of providing grants only for building or "bricks-and- mort ar" projects for the agencies, and not for program or operational expenditures. Council also established that no more than 15 percent of the total city allocation should go to non-profit agencies. Also, the grant could be a maximum of 50 percent of the project's cost, and there also is a cap of $75,000 for a single agency in any one year.

A year ago, the policy was amended to include only projects undertaken within the corporate limits of the city - also formalizing a policy the administration had followed since the federal program's inception in 1975.

At a committee meeting this week, administrators and councilmembers alike touched on the possibility of eliminating funding for non-profits. Among those raising the question were Community Development Director James McCarthy and council President Jack Lawrence.

Perna worried more about this possibility than the $4,500 loss in 1986 funding.

"I've heard that talk before," he said of the possible elimination of funding for non-profits. "We'd like to see (the city) continue that type of use. I think that's very important."

Perna pointed to the benefits in the purchase and renovation of the center for the elderly, which will also become the organization's administrative center after renovations are completed. He said the gains achieved through the grants can help social organizations on the road to greater self-sufficiency.

"I think it's an economic development issue," he said. "I see (the block grant funding for non-profit agencies) as an economic development vehicle for our organization."

The public hearing is scheduled at 7:30 p.m. Tuesday in Town Hall, before the regular council meeting. Action on the reductions is on council's agenda that night.